InvestorQ : What does it mean that the UK court has agreed to declare Mallya bankrupt?
Dawn Cherian made post

What does it mean that the UK court has agreed to declare Mallya bankrupt?

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Mitali Bhutta answered.
5 months ago
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A British court has permitted the bankruptcy order against Vijay Mallya and this is the first step to declaring Mallya as bankrupt. That is what the banks were demanding from the UK courts and this allows the banking consortium led by State Bank of India to freeze the global assets of Mallya to recover their outstanding debt. The law firm representing the consortium of Indian banks led by SBI had argued in favour of the bankruptcy order.

In passing this significant order, the UK court judge remarked that there was insufficient evidence that the debt will be repaid to the petitioners in full within a reasonable period. This literally raises questions over the ability and the willingness of Mallya to defray the debt of Kingfisher, post which he had absconded to the UK. The SBI led consortium consisting of 13 Indian banks has dues of $1 billion from Mallya, including pending interest on loans.
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